LIFE INSURANCE CORPN OF INDIA Vs. SHEELA

JUDGEMENT

(1.) THE short facts of the case are that late Shri Parminder Singh, husband of complainant Smt. Sheela, widow, on 4.5.2006 had obtained a policy from the OP LIC for an amount of Rs. 8 lac at a half yearly premium of Rs. 26,333, which was to mature on 4.11.2025. At the time of taking the policy, husband of the complainant deposited on 4.5.2006 Rs. twenty five thousand with the OP Insurance Company against the valid proposed deposit receipt. Four days thereafter on 8.5.2006, Shri Parminder Singh died due to sudden pain in his chest in Brahm Shakti Hospital, Delhi where he was rushed for treatment. The complainant lodged a claim of the insured amount, but the OP company on 10.4.2007 sent a cheque of Rs. 26,333 along with a covering letter towards the refund of premium, instead of giving her the insured amount Rs. eightlac and repudiatedher claim on the ground that there were good grounds for suspecting the cause of death.

(2.) THE complainant therefore filed a complaint before the District Consumer Forum against the OP LIC praying that the OP be directed to pay the complainant Rs. 7,73,667 towards the remaining insured amount Rs. 2 lac as compensation, and also the litigation costs.

(3.) THE OP opposed the claim and filed a written statement, pleading that late Parminder Singh had not fulfilled the formalities of the insurance agreement. He was required to pay a sum of Rs. 26,333 as half yearly premium, but he had deposited a sum of Rs. 25,000 on4.5.2006, and the balance amount of Rs. 1,333 was